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Challenges in OperatingIntegrated Cold Chain for

Horticulture :The Journey of FHEL

Fresh & Healthy Enterprises LtdFarm-to-retail Agri-logistics

Radha Krishna B-Roll#-06,Batch-21

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Why FHEL?

Why set up a Company dealing with freshFruits & Vegetables Nearly 30-40% of fresh produce, valued at

Rs.70,000 Cr wasted in country due toinadequate cold chain infrastructure, multi-layered marketing, etc.

Huge quantities of imported fruits coming to India

At present the business is almost entirely withunorganized sector

The above scenario present both a challenge anda business opportunity

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INTRODUCTION

FHEL is a Public Sector Undertaking (PSU),set up in Feb 2006. The first PSU to start inopen competition with Private Sector

Promoted and wholly owned by ContainerCorporation of India (CONCOR)

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OBJECTIVES

To set up world class Cold ChainInfrastructure in the country and providecomplete logistics services for fresh produce.

Develop long term linkages with farmers,agricultural institutes and governmentagencies to improve quality of produce, yield,

storability and shelf life of variety of fruits andvegetables to enable availability for longer

durations and at reasonable rates.

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CA Store (ControlledAtmosphere) at Rai

First Project. Capacity 12,000 MT, 78 Chambers,computer controls for temp., humidity, oxygen andCO2.

Primarily for apples but successful for many otherF&Vs

Facility has latest Computerized Control

Fully AIR CONDITIONED sorting / grading /packing

facility to retain best quality at all stages. Grading, Sorting and Packing on automatic lines.

Facility formechanized packing for both Retail andBulk.

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What we do?

Apples : Himachal

Procure, move in the shortest possible

time to Rai, sort / grade and store at Rai

Market apples across the country almost

during the whole year

Provide technical knowledge and tools,equipments etc to growers

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What we do? -- II

Store Rice in Controlled Atmosphere (CA) for

exporters

Store Orange and carrots in CA for sale in off-

season Ripen mangoes.

Plan to ripen papaya as well.

Done trials with pears for long term storage

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ACHIEVEMENTS

Till now handled more than 35,000 MT of applesfrom Himachal

Largest supplier of Kinnaur apples. Developed

long term linkages in large parts of HimachalPradesh.

Preferred supplier of apples to many retailchains.

FHEL is now a successful brand in the market,known for quality, integrity in operations andscientific packing.

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TRENDS, CHALLENGES

AND THE WAY FORWARD

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Some Trends

Quality fruit is in demand round the year

India imported more than 1,25,000 MT of

apples in 2009-10

Price of imported apple is almost 3 times

that of Indian apples in the season, yet the

imports are growing @30%+ every year.

India is also importing large quantities of

grapes, kiwis, pears, etc.

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Winds of Change

Thanks to entry of imported good quality

fruits, the sector seen as a good business

opportunity

40,000 MT of CA Storage capacity

established in the last 4 years

Demand of reefer transport has increased

manifold. This is now a major constraint

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The Way Forward

Organized players have started entering this sector.

The organized players should make a difference in the

next 1-2 years and then the sector should see major

investments

Expect substantial improvement in quality, productivity

and reduced losses in Fresh Produce supply chain

Perhaps a mix of co-operative and corporate model

should work best for this sector

Role of Subsidies may have to be studied for effecting

growth.

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Thank You